NEW DIRECTIONAL PUT PLAYS
Life Tech. - LIFE - close: 46.61 change: -1.39 stop: 50.10
Why We Like It:
Life Technologies Corp. is classified as a biotech company. The stock has been an amazing performer off its late 2008 lows. Now it looks like shares are reversing or seeing a short-term top under resistance at $50.00.
I am suggesting bearish positions now. We're going against the flow with LIFE's long-term up trend so I'm suggesting small positions. The $45.00 level is probably short-term support bolstered by the 100-dma. Plus the $44.00 level should also offer some support. Expect a bounce near these levels. Yet if the S&P 500 continues to retreat I expect LIFE to follow. Stocks tend to go down a lot faster than they go up.
Our target to take profits is at $41.00.
I am suggesting the November puts. My preferred strike is the $45 strike.
BUY PUT NOV 45.00 IUV-WI open interest=2726 current ask $0.95
Picked on October 28 at $ 46.61
Change since picked: - 0.00
Earnings Date 10/27/09 (confirmed)
Average Daily Volume = 2.1 million
Listed on October 28, 2009